501.821 Grounds for judicial dissolution.
The district court may dissolve a cooperative in any of the following ways:
1. A proceeding by the attorney general, if it is established that either of the following apply:
a. The cooperative obtained its articles of association through fraud.
b. The cooperative has continued to exceed or abuse the authority conferred upon it by law.
2. A proceeding by a member if it is established that any of the following conditions exist:
a. The directors are deadlocked in the management of the cooperative’s affairs, the members are unable to break the deadlock, and either irreparable injury to the cooperative is threatened or being suffered, or the business and affairs of the cooperative can no longer be conducted to the advantage of the interest holders generally, because of the deadlock.
b. The directors or those in control of the cooperative have acted, are acting, or will act in a manner that is illegal, oppressive, or fraudulent.
c. The members are deadlocked in voting power and have failed, for a period that includes at least two consecutive annual meeting dates, to elect successors to directors whose terms have expired.
d. The cooperative’s assets are being misapplied or wasted.
3. A proceeding by a creditor if it is established that either of the following apply:
a. The creditor’s claim has been reduced to judgment, the execution on the judgment returned unsatisfied, and the cooperative is insolvent.
b. The cooperative has admitted in writing that the creditor’s claim is due and owing and the cooperative is insolvent.
4. A proceeding by the cooperative to have its voluntary dissolution continued under court supervision.
98 Acts, ch 1152, §63, 69
Referred to in §501.822, 501.824
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.